FTSE 100 Live: Stocks slump as oil rises; Reeves tax hikes trigger borrowing boost

Good morning and welcome back to the City AM liveblog.

An extended ceasefire may have been announced in the Middle East, but its left markets with major appetite for further peace before investor sentiment recovers.

Brent crude – the international benchmark for oil prices – was trading back over the $100 mark on Thursday morning. Oil prices have served as the key indicator for market volatility the last few months as tensions ramped up.

Whilst Donald Trump extended the temporary suspension of hostilities on Wednesday, which he said was at the request of Pakistan, those tensions have continued to escalate. Trump said the ceasefire would remain in place until final negotiations are reached.

But the President has said there is “no time frame” on ending the war with Iran. White House Press Secretary Karoline Leavitt said the new extension is open-ended, with no set deadline.

Leavitt also fiercely defended the US’ plan as working.

“We are completely strangling their economy through this blockade. They are losing $500m a day. The Kharg island is completely full. They can’t move oil in and out. They can’t even pay their own people as a result of this economic leverage that President Trump has inflicted over them,” she told reporters.

Meanwhile, the reigme in Iran are continuing to use their one major bargain chip – and the key cause of volatile oil prices – the Strait of Hormuz.

Iran’s chief negotiator said it is “not possible” for the narrow waterway to be opened for traffic to flow through due to “the blatant violations of the ceasefire” by the US and Israel.

We’ll be continuing to bring you the latest market updates and more.

Here’s a few of our top headlines this morning

• Government launches Britain’s largest ever retail investing campaign
• Lewis Moody seeking sponsors for 500-mile ride in aid of MND
• UK workers suffer bigger tax hikes than any leading economy after Reeves’ raid
• Eight London sites raided in peer-to-peer crypto trading bust
• Proposed consumer lawsuit regime may expose businesses to mass litigation